always. out of time. thank you for watching on sunday. i'm eric shawn. >> jamie: i'm jamie colby have a great day. >> shannon: the debt deal, and looks like hope for grand bargain are out the window today. president obama is opening the white house doors to leadersers from both parties but will everyone show up? don't fall for it. those are strong words from presidential contender ron paul about a potential debt deal. known for his outside the box thinking. he will share his look at the debt problem live. shuttle swan song. atlanta docked with the international space station for the last time. the shuttle crew will head in the station during the show and we'll take you there live. all of that and one-on-one with new york congressman charles rangel who says we should look to jesus to settle america's debt dilemma. i'm shannon bream. america's news headquarters live from the nation's capital starts right now. captioned by closed captioning services, inc

>> shannon: what a difference a day makes. word of a possible deal to gulf on both sides. the talks at the white house may be starting from scratch again after john boehner announced he is not going for a long-term debt deal. we have live team coverage. doug mckelway is live on capitol hill. but we begin with wendell goler at the white house. hello, wendell. >> reporter: hello, shannon. the president began pushing for up to $4 trillion deficit reduction deal after republicans walked out on talks on a deal more than half that size, because the democrats wanted higher taxes to be a part of it. the president hoped for up to 25%. now boehner canned a bigger deal saying last night the white house will not pursue a bigger debt reduction agreement without tax hikes, i believe the best approach may be to focus on producing a smaller measure. aides say mr. obama's logic was democrats would be more likely to go along with the spending cuts and the republicans with tax hikes if the overall deal was significant enough to truly

bend the curve and put the country on a path of declining deficit. secretary geithner says the plan, the ultimate plan will need political and economic balance. >> it will take the democrats and republicans in both houses to do something. that is the reason why politically you have to have balance in the deal. economically you need balance in the deal. if you try to reduce the long-term deficit without doing sensible tax reform, closed loopholes in the middle class, you have to do very deep cuts in the core functional government, benefits that the elderly depend on. >> the two sides agreed some spending cut as part of the smaller deal but not enough to satisfy the republican demand that the deficit be reduced by at least as much as the $2.3 trillion hike in the debt ceiling. secretary geithner says the closer we get to debt line to raise the debt ceiling, august 2, the more nervous investors will likely get and more interest rates are likely to rise.

>> shannon: wendell goler live from white house with the latest. thank you. we turn to capitol hill now where we find doug mckelway. let's check in with doug to see what congressional leaders say ahead of talks today. >> reporter: nothing demonstrates the ideological divide between the parties as much as what happened last night. republicans scuddling the deal. the $4 trillion long-term debt on their part because they refuse to accept any tax increases. the democrats scuddling the deal on their part because of their refusal to accept cut on medicare and social security. listen to what mitch mcconnell told bret baier about raising taxes when you have 9.2 unemployment rate. >> we have 9.2% unemployment. their prescription is raise taxes? my goodness, who thinks that is -- the president didn't think it was a good idea in december. why do they think it's a good idea now? >> on the other hand, you've got xavier becerra speaking to bret baier on this morning, the vice chairman of the

democratic caucus. saying that both sides are going to have to give something that is -- give up something that is near and dear to their hearts for a deal to be struck. >> we have to get our house in order. but do it in a way that's balanced and the way the american public would do it if they were sitting at table of congress. they wouldn't walk away from the negotiation. they'd sit there and get it done because they have no choice. >> reporter: he did not mention that last friday 70 members of his own caucus signed a letter to the president of the united states and read in part, "we urge you to protect medicare, medicaid and social security by keeping these important programs off the bargaining table." both sides, shannon, are being absolutely dug in here. refusing to give up the sacred cows. >> shannon: thank you, doug. live on capitol hill. with the friction surrounding the debt negotiations many americans wonder how lawmakers will ever find common ground. joining us now with the take

on the talks is senator and budget committee member michael crapo. thank you for coming in today. >> thank you, shannon. >> shannon: you heard the tail end of doug's report there, the fact that both sides seem so dug-in at this point, do you see a light at the end of the tunnel? >> i see a pathway forward if we can get out of the paradigm we're in now. if you nets what is said, we're in the age old battle of should we raise tax on the rich or cut spending to help the poor? the gang of six or five as we are now that is built on the fiscal commission plan is changing the fiscal paradigm. i think that is the approach we need to take. everything does have to be on the table but the approach we need to take with regard to the entire process to grow our economy and grow our nation strength. do that through approaching revenue from tax reform. rather than just tax hikes. approaching the spending side in terms of meaningful thoughtful approaches that will actually help us protect

that safety net. >> shannon: okay, you mention tax reform. at this point we can't seem to reach a deal on many things in washington. we had all the continuing resolutions, just to keep the government funded and keep it going. now we have a debt deficit issues. is there a real appetite for reforming the tax code? >> well, unfortunately because of the politics i just mentioned, the age old politics of fighting over increasing taxes versus cutting spending. the appetite yet hasn't grown for true tax reform. i see it growing. i see it growing for a couple of reasons. one, the real issue here is growth. we've got to get our economy back on a strong die familiaric track. the way to do that is through controlling spending, yes. but through reforming our tax policy. if you look at the tax code today, you have a hard time finding one that is more unfair, more complex, more expensive to comply with and frankly more anticompetitive to the u.s. business interest. we can have a phenomenally dynamic impact on our economy

if we reform the tax code. we can do that by looking at the so-called tax expenditures that the president wants to look at. and actually reducing rates with those. then generating phenomenal growth that will provide revenue for the deficit reduction. >> shannon: okay. i want to ask you to respond to something that one of our colleagues, the democratic senator chuck schumer had to say as things were falling apart last night. some things scaled back with the house speaker john boehner today. not going for a big huge deal now. this is part of what chuck schumer had to say -- >> shannon: your response? >> i suspect that is more of the grand politics that you hear playing out there. because it was never put on the table. the kind of reform that john boehner has been asking for, the kind of reform i'm talking about. what was put on the table was again, tax hikes on the

wealthy. so that we can do less spending reduction. we've got to get out of that paradigm. we've got to get out of the politics. some of the politics poll really well. one of the problem we're having now is pollsters are at full employment. and politicians are following what they are telling them. it's telling them on the one hand don't put social security or medicare on the table. don't talk about those things. on the other hand, just talk about taxing the rich. you will be fine. but that doesn't help us get to a solution. >> shannon: we certainly hope that you find one. we know you are busy not only with the gang of six or five or whatever it currently stands to be but with everything else negotiated on the hill. thank you for making time for us. >> thank you. >> shannon: fair and balanced, we'll get democratic reaction in ten minutes from former florida senator bob graham. so what do you think about all of this at home? can congress and president obama strike a deal to fix the nation faltering economy? we put that question to you on foxnews.com. the majority of you say no.

it's clear the differences are too great to find a compromise. well, they got to figure something out ahead of august 2 we hope. head to foxnews.com and weigh in. we always want to hear your voice. ♪ ♪ ♪ ♪ >> shannon: that was electric light orchestra "mr. blue sky" waking up the crew at 3:29:00 a.m. today. the shuttle docked with the international space station and the crew is performing the back move to allow heat shield inspected. then the hatch between the shuttle and the space station will open and we'll bring it to you live so you can see it for yourself in the next hour. word today there will be two memorial services for former first lady betty ford. the first is held tuesday with her close friend rosylyn

carter giving a eulogy. it will be flown to the final resting place, grand rapids, michigan. she will be buried next to her husband, former president gerald ford. thank you and goodbye. that is what is written on the front page of the last edition of the news of the world newspaper. after 168 years, news corp. ceo rupert murdock decided to schult down britain's best selling sunday paper because of a phone hacking scandal. message on the paper's website read "this newspaper is truly sorry." allegation surfaced that the paper's pleas hacked in voice mail and paid police for information. news corp. is also the parent company of fox news channel. it is the last day in america for the royal newlyweds. they have another very busy one. duke and duchess of cambridge are making time for the arts. william and kathryn will visit inner city arts, program in the heart of los angeles that provides arts education for at-risk kids. after that, the royal cup will head to a job fair for service members that aim to help find

work for troops returning to civilian life. last night they attended a hollywood fundraiser and prescription william put on his polo gear and scored four goals in a charity polo match in santa barbara. a strong earthquake jolted japan but luckily a tsunami warning has been canceled. the 7.0 magnitude earthquake hit near the city of "fox news sundayof sendai.but no damage w. the nuclear plant was danieled in the earlier quake and now they are beginning a series of test to term when the damaged reactors can be reopened. triple digit temperatures breaking summer records all across the country. it's only july. maria molina is at the fox weather center with more on the extreme heat. hello. >> hi, shannon. that's right. extreme heat across part of the country. i want to point out it started in april, whic.

wichita falls, texas, had triple-digit heat as early as april. it's noon hour eastern coast but look at the temperatures already. 92 in memphis, tennessee. 91 in dallas. factor in the humidity and it feels hotter. we'll look at the heat index values. as far as how hot it will get. 100-degrees is the high in dallas. 95 in memphis. 96 will be the high in kansas city. factor in the humidity and look at the temperatures that feel like, what it will feel like out there today. 106 in st. louis. 106 in memphis. 106 in springfield. this is dangerous stuff. stay hydrated and wear the appropriate clothing. light colors and nothing really tight. a number of excessive heat warnings and heat advisories across the country from southeastern nebraska to kansas. in to portions of the southeast like alabama and mississippi. stay safe and hydrated and the

warnings will remain in place, not just for today but through the next several days. the heat is not going anywhere. >> shannon: well, thank you for the cautions. we need the know. thank you, maria. >> weapon. >> shannon: relations between the u.s. and pakistan have been even more tense since bin laden was killed. today, word tensions may have reached a new high. plus in the race for the white house, new hampshire, of course, a key stop. congressman with local roots will share his insight on which contenders could see success in his state. stay with us. [ mom ] one of the challenges for kayla being gluten-free is actually finding choices the whole family will love. five flavors of chex are gluten-free, including the honey nut flavor. and it's nice for me to be able to syes" to something that they want to eat. [ male announcer ] chex cereal. five flavor gluten free to something that they want to eat. funny thing about vegetables... they fill you up without filling you out. yes! v8 juice gives you three of your five daily servings of vegetables.

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>> shannon: teams of investigators looking into the cause of a roller coaster accident that killed a 29-year-old army war vet. he was thrown from the roller coaster in upstate new york

friday. he lost his leg because of a roadside bomb in iraq in 2008. his family says he was looking forward to rebuilding his life. >> he did believe in living life to the fullest. we're trying not to feel guilty for taking him to the park. he wanted to go so badly with us. there is a lot of emotions right now. >> it's not clear if the park tried to prevent him from the ride because of his injuries. ♪ ♪ >> shannon: with the clock clicking down to the august 2 deadline, can lawmakers put together a deal in bipartisan, keeping us fair and balanced? author and former senator from florida, bob graham. he is here to talk about the debt crisis and also to talk about the new book and controversy. the book "keys to the kingdom." thank you for joining us

today. >> thank you very much. >> shannon: you have been on the inside of putting together a deal in washington. now you have a different perspective from outside the beltway. what can you tell us about your impression of how the debt deal is or isn't coming together? >> my impression is that we know what the last chapter is going to be. there will be a raising of the debt ceiling so that the united states will not for the first time in its history default. what we're seeing now is a lot of political theater where both sides are playing to their base. whether it's on the democratic or the republican side. but over the next few days, that is going to have to give way to some serious negotiation. we have done this twice before. we did it during the first bush administration. we did it during the clinton administration. i'm confident that it can happen again in 2011. >> shannon: in congress you were the executive of florida and you had to pull together

budget and build coalition. what does it take in the wake of leadership to get something done? >> a couple of things. one, you have to agree to what your goal is. right now, apparently, there is disagreement as to whether the goal is $4 trillion settlement or a $2 trillion settlement. you have to come agreement on the basic things such as that. second, is you need to have everybody working off the same facts. greenspan once said everybody is entitled to their opinion. nobody is entitled to their facts. if you get those two things, agreement on goals and the facts, what you tend to find is the options are not that great. and you can reach agreement. >> shannon: all right, senator. talk about the new book. it is very interesting because it's fictionm work of things that happened in connection with the 9/11 attack. with saudi arabia.

with the senator who may bear striking resemblances to somebody else that we know. tell us what was behind you writing the book. it's from a spy thriller but it comes from a serious place for you. >> what distinguishes the book is so much of is it true. we know a lot about the saudi assistance to two of theheimers who lived in san diego. they provided money, apartment, flight lessons and a ring of support to maintain anonymity to hijackers. we don't know if the same assistance was provided to the other 17. we don't know what the motivation of the saudis were to do this. we don't know why the united states government went to links to keep it december closed. after a couple of efforts at writing this in a nonfiction

form facing significant censorship, it was miff decision to do it -- it was my decision to do it as a novel where i present it as fiction although much of is it fact. through that, there is a significantly lowered standard of censorship. >> shannon: of course, you served on the senate select committee on intelligence so a lot of folks will know that you have some of the most inside information on exactly what happened with 9/11. what kind of process does this book have to go through, the vet something fiction or nonfiction you can get it on the stand? >> i'm a member of the c.i.a.'s external advisory board. as such, we are required to submit anything we write about the intelligence community for preapproval. i have done that on a number of occasions. what is in the final printed version of keys to the kingdom has passed muster. >> shannon: all right. senator, a page-turner. best wishes with the book. thank you for joining us today. >> thank you very much. >> shannon: well, tensions between the u.s. and pakistani governments may have reached a

new high with word that the u.s. may be freezing some of our aid to pakistan. peter doocy is tracking the story and joins us live with more. hi. >> reporter: the obama administration apparently doesn't think pakistan is doing enough to help us catch bad guys so they are going to shave $800 million off the $2 billion plus we give them in security assistance every year. it's a delicate situation, because pakistan is critical to the success in afghanistan, as a supply route. things have been tense for a while. highlighted by the apparent lack of communication surrounding our raid that took out bin laden on their soil. today, white house chief of staff bill daley made clear that until we patch it up with pakistan, their wallets will be lighter. >> obviously, they have been an important ally in the fight on terrorism. they've been victim of enormous amount of terrorism. but right now, they have taken some steps that have given us reason to pause on some of the aid which we were giving to their military. >> reporter: using broader strokes, president obama said

this week that we need to keep giving foreign countries aid so they don't become terrorist breeding grounds. he thinks it's worth it though we don't have dough to spare at home. >> it's smart for us to make a very modest invest in the foreign aid. it's a force multiplier and something that even in tough fiscal times, america needs to continue to do as part of our role as global leader. >> reporter: the money we withhold won't affect nonmilitary aid payments. >> shannon: very good. thank you, peter. you are looking live now at the international space station. the space shuttle atlantis has just connected to the station for the very last time. this atlantis mission marks the end of the shuttle. where does the space station go from here? doug mckelway looks what the the future may have in store. >> with over 5 million visitors a year, washington air and space museum is a testment to the past glories of nasa, but not to the future. now marked by the loss of 3200

shuttle jobs, a future without any manned u.s. space missions for the first time in half a century. >> we don't have an answer to the question what is next for nasa? nasa has no answer. the administration as no answer. as we transition to the next generation of space exploration, florida aerospace workers left with questions about their future. >> that contrasts with the administration upbeat commitment to nasa and ultimate goal of landing a man on mars. >> let's start thinking about what the next horizon, what is the next frontier out there. in order to do that, we need technological breakthroughs we don't have yet. >> the administration is pinning much hope on the private sector. for low-orbit mission. there are companies that show promise there. nasa focuses on deep space exploration. but some are skeptical of the administration's plan and its budget. >> if the lord had meant us to fly in space the way they do in the movies, we would have

been born with more money. >> reporter: in bitter-sweet irony, when atlantis return, only russia, the country that president kennedy wanted to defeat in space race will be capable of launching americans to space. >> americans are the pioneering people. this is about the american myth and without the human space flight the country would be impoverished and had to re-examine what it is to be american. >> reporter: if the administration lacks a long-term financial commitment to nasa, so does the congress and the entire field of republican presidential candidates. none of them want to increase funding for any government endeavor in the climate of budget cutting. in washington, doug mckelway, fox news. >> shannon: well, in an hour we'll see a space welcoming. the hatch will open and the shuttle crew will enter the space station. we will bring it to you live right here on fox. well, it's every parent's nightmare to have your child in harm's way. so when jake mccoy 3-year-old son fell 40 feet down a well in ohio, plunging to 10 feet of water, he

immediately rushed to save him. >> shannon: it's amazing what you can do if the son or daughter is trapped in a well screaming and crying your name. my heart is down there with him. i have didn't know what to do or what to think. >> shannon: the father tried to rescue the son to slowly climb down the well rocky wall but he got stuck. the firefighters were able to rescue them both using a rope. jake said his son hasn't -- if his son hadn't learned to swim the outcome could have been very different. in terms of her own talk show, oprah may have take an bow but new word now she may host the most important award show in hollywood. we explain that next. even with the white house meeting tonight we may have no debt deal. after the break, find out what senate minority leader mitch mcconnell says will happen if they don't soon reach a deal. >> is there a contingency plan? >> there is always a contingency plan. >> what does it look like?

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>> shannon: when it comes to the debt, republican leaders heading to the white house for a meeting today say any hopes for a so-called grand bargain are off the table. it's the bottom of the hour. peter doocy is standing by at the top of headlines. >> house speaker john boehner says he would like to consider a smaller deal, one based solely on spending cuts without the tax hike favored by democrat. boehner and other bipartisan leaders are heading to the white house tonight for debt talks. the space shuttle atlantis just docked at the international space station. right now, the crew is performing a back flip move that will let the nasa engineers inspect the heat shield. the hatch between the shuttle and the space sation will open at 1:20:00 p.m. eastern time today. we'll bring you that live. former first lady betty ford will have two memorial services this week. service in california on tuesday, with her close friend and former first lady carter

giving a eulogy then. the body will be flown to the final resting place, grand rapids, michigan, service held there on thursday. she has given up her daytime talk show, but could oprah win friday be back as host of the oscars? the "chicago sun times" report that winfrey tops the list of candidates to host next year's show. those are the top stories. back to you. >> shannon: thank you so much. the leaders have to come together to get it done. again, the american people probably get it better than the politicians. this will affect them more than the politicians. the opportunity to see new jobs if the small businesses can get the line of credit they need to expand. >> the partisan rhetoric is heating up ahead of the debt talk at white house. i sat down earlier with bret baier filling in for chris on sunday sunday to get his take on the interview from key players on both sides of the

aisle. >> the clock is ticking at the white house tonight. you talked to key players in the debt negotiation battle. >> senator mitch mcconnell said he doesn't know what will come out of the meeting tonight but said the scaled back, package that speaker boehner is now proposing is more likely because the big ticket deal, papa bear deal to tie the corporate tax reform, reinstruction of the draft code, entitlement is not possible after a phone call with speaker boehner and president obama at camp david last night. senator mcconnell seemed to indicate that there is a back door plan if it's not reached. the deal is not reached. he wouldn't get in details there. the bottom line is we get the sense that the debt creeling is going to be increase -- debt ceiling is going to be increased and that the republicans are going to push it as far as they can to get as much as they can. >> shannon: you had a democratic voice in this. congressman becerra joined you as well. >> xavier becerra, the vice

chair of the democratic caucus, sounded like when it sounded like relief, that the entitlement is not a big part of the package going forward. there is an outrage, uproar from the democratic caucus on friday when it was leaked that thous was talking about the social security. we went in to a little bit of the weeds on social security, and what the problems are long-term. the trustees report says they won't be able to pay out fully in 2036. and we talked about the trust fund and some of the things that the democrats and the republicans feel about the social security going forward. interesting. he had props. >> shannon: he did. that was interesting. he asked for your wallet. people want to find out what that is all about there is a sense of the last 24 hours a lot of finger-pointing and blame game from both sides. did you get any sense that there can be something accomplished at the white house tonight? >> i did, but the ball could move forward. but clearly they are still far

apart. it will be the president's job and speaker boehner's job to convince each of their parties that they can have the votes to get something through. even if it's smaller package that increases the debt limit. one thing is house republicans could go forward with a smaller deal that doesn't take you through 2012. it just increases the debt ceiling before the election. which could be tough for president obama. he doesn't want that. he said he would veto it. the only other thing about sunday sunday i did not have any sunday soup. >> shannon: oh. well, we have snacks afterwards. >> fantastic. >> shannon: thank you for the preview. >> you got it. >> shannon: you can catch bret's exclusive interview with senate minority leader mitch mcconnell and congressman xavier becerra right here on fox. "fox news sunday" will air at 2:00 p.m. and 6:00 eastern. tensions are rising between the u.s. and pakistan. we look at why the funds are being pulled. verizon claims i 4g lte is twi as fast as &t.

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>> shannon: defense secretary leon panetta just touched down in baghdad making news on his first trip overseas as secretary saying he believes the defeat of al-qaeda is within our reach. david piper is streaming live from kabul, afghanistan, with more. hello, david. >> reporter: hi, shannon. before leaving for iraq the new defense secretary spent most of the day in southern afghanistan meeting the troops and getting a better understanding of the situation here. southern afghanistan has seen some of fiercest fighting of the past few years and has the majority of u.s. troops based there. as you said, it's the first overseas trip since getting the new appointment. afghanistan is a key responsibility for him. the defense secretary has been very up-beat about the prospect of the defeating al-qaeda during the trip. he said if they can keep the military pressure up on them, and capture or kill less than 20% of the terror group key

leaders still operating in countrys between here and afghanistan and north africa, they will have in effect strategically defeated them. his up-beat assessment comes as afghanistan prepare farce gradual drawdown of troops due to begin this summer. 10,000 are due to leave this year. another 23,000 in 2012. he has already had a meeting with hamid karzai to discuss the drawdown and the role of afghan forces when it happens. they are about to take the lead in some areas which nato forces handing it over to them this month. he hope to drive the taliban to peace talk in the period when the u.s. forces draw down. it is key to keep pressure up now to give the country a chance of some reconciliation. speaking in capped har, the new defense chief said the focus of the trip is the handover of security to afghan forces.

he acknowledged that the remain, "a lot more work to do in terms of being able to transition the responsibility to them." now that leon panetta has moved to iraq, his focus will be on the situation there and concerns as he said here about iranian weapons smuggling. after all, 15 u.s. troops were killed there last month. back to you. >> shannon: all right, david. thank you very much. crews in india are scrambling through wreckage at this hour, desperately searching for survivors of a deadly train crash. more than 100 people were hurt and at least 31 killed when this express train derailed near the city of luknow. the death toll has been rising all morning long. the train was heading to new delhi from calcutta when officials say 12 cars skidded off the tracks. ♪ ♪ >> shannon: much of the debate over reigning in the debt and deficit center is on

reforming entitlement program like medicare. our next guest, republican congressman frank ginta is taking heat over how he thinks medicare should be handleed, a member of the house budget committee and joins us live. thank you for your time today. >> my pleasure to be with you, shannon. >> shannon: let's talk about the fact that the plan we saw come out from congressman paul ryan and the house budget committee talks about making significant changes to medicare. of course, the bottom line plan is to try to save it. democrats don't see it that way. you have taken some heat for supporting that plan. what do you think is the best idea for performing entitlements? >> well, the first thing we have to acknowledge is let's preserve medicare. so future generations have the opportunity to utilize the program. the best way to do that is to make sure that we ensure every american who is 55 and older excepted from any changes, that we acknowledge 10,000 new baby boomers are coming on per day. the growth rate is 8%. which is not sustainable. we need to reduce it down to 2%. the easiest way to do that is

give americans the flexibility to choose the plans they want, have a direct payment to their carriers on their behalf for $15,000. that is reasonable to all americans. it preservessed sustains medicare for future generations. that is a good thing. >> shannon: clearly, there seems to be a break, a gulf between the two sides when it comes to performing entitlements. we're told it's rumored to be one of the reasons that the talks broke down over the weekend though the meeting is still on at the white house tonight. how do you accurately frame that debate so the average american can get a factual feeling and the true facts on exactly what you're talking about what is going to happen. the democrats have been very good at saying you are going to take money away from our seniors, you're going to hurt the poorest among us. if you make changes that the republicans are proposing. >> what we need to do is get the facts out. they're these. 10,000 new americans every day are coming on to medicare. the growth rate is 8%. we have more and more

physicians refusing medicare patients because of the lack of dollars that they are receiving from the federal government for the services. finally, the trustees of medicare say if we don't do something in 12 years it goes away completely and becomes bankrupt. when you tell the american people that it goes bankrupt in 12 years what they say is we'd like you to preserve it and like you to fix it. it's 40% of our economy. dollars we spend at the federal level so we need to ensure the people have the facts. put reasonable solutions on the table. so far they have done nothing but utilize rhetoric. not good for the country or solutions. >> shannon: turn to 2012. a lot of candidates for the new mexico nation are spending time -- for the nomination are

spending time there. and let me ask you how you think the candidates are doing and who seems to be resonating with the people of new hampshire? >> the candidates are doing well. we don't have a clear-set field yet there are probably one or two candidates whether it's rudy giuliani or rick perry from texas. they're all doing what they need to do. grassroot campaigning in new hampshire. door-to-door, home-to-home, living room-to-living room. that's what we expect and we want to make sure we have all the questions posed to every potential candidate in the end, we'll choose the most conservative candidate who can beat barack obama in 2012. >> shannon: quickly, i want to ask you do you have a timeline for any endorsement? >> i'm like everyone making sure i get a feel for each and every candidate. if i do endorse it would be sometime in the fall. but so far, i have not made any decisions. >> shannon: all right. we look for that congressman. thank you for your time today. >> thank you so much, shannon. >> shannon: well, new update

now regarding operation fast and furious, the federal law enforcement program linked to putting guns in the hands of criminals. william la jeunesse,fox news correspondent on the fight on capitol hill to find out who knew what. >> attorney general in march, three weeks after fox news said gun found at murder scene of a border patrol agent the gun was sold to agency he supervised, a.t.f. >> when did you first know about the program officially called fast and furious? >> not sure of the fact date but i probably heard of it for the first time in the past few weeks. >> holder claim he is didn't know about fast and fure you, even though it was a.t.f.'s most sensitive operation. >> the size of this operation was so huge, so tremendous that it is impossible to do things in a bureaucracy

without orders from the top down. >> mike communicates with host of agents dalely on the website and they told him wednesday operation castaway out of the tampa office knowingly sold guns to criminals in this case, 1,000 for the violent drug gang ms-13. the guns to honduras. >> people don't december side, yo -- don'tdecide one day in phd the next day in tampa, or the following day in houston that, you know, oh, we're going to make up this policy. >> in houston, the a.t.f. reportedly told the gun store to sell to suspected criminals against the owner's better judgment. >> they did this for months and months and months. went through with the sales because the a.t.f. told them to go through sales. >> it appears to date back to the justice department document that says merely seizing firearms through intradiction will not stop fire arms trafficking to mexico. some in washington want a special prosecutor.

others simply say congress isn't getting a straight answer. >> either they were ignorant or lying to us. >> congress gave the a.t.f. $21 million in 2009 including $10 million in stimulus money for project gun runner. the predecessor of fast and furious. a year later, it got $37 million more to expand gun runner. yet nowhere in the budget do you see the words "fast and furious." in los angeles, william la jeunesse, fox news. the minister for former steeler hines ward says he was not driving drunk and ward has been released op bond. the football star has not spoken publicly for his arrest saturday but apologized to fans and steeler organization. ward's rep says he's confident when the facts come out ward will be proven innocent. you have seen signs at amusement park that say you have to be tall enough to ride a ride. now a pence restaurant says you got to be at least six

years old to eat there. the unusual policy will take effect july 16. the owner says the kids are just too darn loud. he says, "we feel that it's not a place for young children. the volume can't be controlled in many, many times they have disturbed other customers. i think it's the height of being impolite and selfish and therefore i instituted the policy." all right. rebel forces are making gains in lib yeah. they are the closest to the capital. they say they have been since the operation started. leland vittert is live on the front line and we'll have a report right after the break. we used to bet who could get closest to the edge. took some crazy risks as a kid. but i was still over the edge with my cholesterol. anyone with high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me. i stopped kidding myself. i've been eating healthier, exercising more, and now i'm also taking lipitor. if you've been kidding yourself about high cholesterol...stop. 80% of people who have had heart attacks have high cholesterol. lipitor is a cholesterol lowering medication,

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>> shannon: the obama administration will go for the biggest deal possible in terms of the debt ceiling. u.s. treasury secretary tim geithner on nbc said the results could be catastrophic if both parties fail to reach an agreement. g.o.p. leader mitch mcconnell of kentucky said a big deal is out of the question. leaders from blot sides of the aisle will meet to work on deficit reduction package. admiral mike mullen is visiting china to bolster u.s. relations with the country as the tensions over the south china sea are mounting. nearby neighs vietnam and philippines are vying for

portion of the body of water thinking it could be rich source of oil. [ inaudible ] bloodshed in a mexican turf war. 40 people reportedly killed in one of the most violent cartal battles to date. friday, gunmen armed with rifles stormed a nightclub. the same day, ten people were beheaded in a gruesome attack outside mexico city. those are the top stories for right now. libyan rebels are making significant gapes in their mission to reach the capital city of tripoli, amidst the rocket fire from the gaddafi loyalist forces. leland vittert was on the front lines to witness the fighting firsthand. [ gunfire ] >> reporter: often wearing just t-shirts and fighting in flip-flops, rebels begin to defend their latest front line. they moved a huge amount of sand on to the road. then backed up their pickups

mounted with machine guns to provide some cover against incoming rounds that often land behind us. >> after every back the soldiers yell ala akbar as a chant. "god is great" here on the front line. this is the tip of the spear. nobody has body armor. they are taking incoming fire here. it is a fierce battle. the long desert road to tripoli tells the story of what they face. burned out, gaddafi tankss litter the drive. far from camouflage tent, the bright blue pop top mark where rebels used to sleep as they defend the ground many grew up on. make no mistake, every kilometer and meet they're the front line move is paid where number of soldiers are fighting with wounds on the front line despite they're taking heavy incoming fire. >> shannon: that is leland vittert reporting from libya. we have wild cards coming

up in the debt debate. the g.o.p. presidential contender and congressman ron paul is calling out the white house. find out what he says needs to be done to fix the debt problem. it doesn't get more wild than that. find out why congressman charles rangel is looking to a higher power to solve all of our economic troubles. >> what will jesus do? i'm just posing the question. what would jesus do this weekend? [ mom ] one of the challenges for kayla being gluten-free is actually finding choices the whole family will love. five flavors of chex are gluten-free, including the honey nut flavor. and it's nice for me to be able to syes" to something that they want to eat. [ male announcer ] chex cereal. five flavor gluten free

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>> minutes from now, the hatch between the international space station and shuttle atlantis will open and the crew will enter the station. once that hatch opens, the ceremony is held to welcome the four crew members of the atlantis. the last shuttle ever. we're going to bring that to you live as it happens. hour number 2 of "america's news headquarters" starts right now.

>> 24 hours can make a huge difference in the world of politics. yesterday's possible debt compromise plan has been scuttled by house speaker john boehner who says instead now he wants a smaller deal. wendell goler is live at the white house with the very latest. hi, wendell. >> how are you? speaker boehner balked at the bigger deal for the same reason that republicans walked out of the debt reduction talks led by vice president biden on the smaller ones, the democrats are demanding that increased tax revenue be a part of either agreement. treasury secretary geitner saying on a couple of talk shows today, the president doesn't believe you can cut $2 1/2 to $4 trillion from the deficit over the next 10 years by cutting spending alone. and told cbs' "face the natio" i you can't ask middle class americans to bear all the burden for those savings. he's asked the wealthiest 2% of americans to pay a modest additional share of the burden. there is no alternative to doing

it that way. the president's logic was that the pain of spending cuts for democrats and higher taxes for republicans would be diminished by the gain of more deficit reduction that would put the country on a path of living within our means and there was some republican support for it. sources say house speaker boehner suggests that a tax deal that would offset the bush administration's upper income tax cuts with the understanding that the tax code would be rewritten before anyone's rates would go up but the senate republican leader mitch mcconnell suggests last week 's disappointing jobs report was a game changer. now, six months ago in the lame duck session, president obama went along with extending the bush administration's tax cuts, all of them and cutting payroll taxes to get a deal on extended benefits. he has until august 2nd to reach agreement with congress to raise the country's debt ceiling and avert the country's first ever fiscal default.

shannon? >> wendell, we understand the meeting is still on for 6:00 eastern tonight. can you recap for us who is going to be attending? >> well, it will be the republican and democratic leaders of the house and senate. eight of them. and the president of the united states and vice president biden. >> all right. wendell goler live at the white house, thank you so much. live on america's news headquarters yesterday, a presidential candidate took aim at fellow g.o.p. contender mitt romney. the michigan congressman says romney and president obama has so much in common, they should be on the same ticket. >> i think it's pretty evident, we have obama as the champion of big government. we've seen mr. romney as championing the bailout banks and wall street bailout, they're less rivals than they are running mates. 30 million americans can't change jobs because there are no better jobs but it cannot slow down. at a period of time, we need the economy to grow so that people who are trapped, especially in those jobs that they can't leave

are seeing inflation rising -- >> for more on congressman cotter's comments and the latest on the 2012 election, check out the politics page on foxnews.com. there will be two memorial services this week for former first lady betty ford. the service will be held in california on tuesday with ford's close friend and fellow first lady rosalynn carter giving the eulogy. mrs. ford's body will be flown to her final resting place in grand rapids, michigan, the service will be held there on thursday. betty ford will be buried next to her husband, former president gerald ford. tensions between the u.s. and pakistan may have reached a new high with word now the u.s. may freeze its military aid to the country. peter doocy is following the story and joins us live. hi, peter. >> hi, white house chief of staff bill daley confirmed until we patch things up, they won't be getting as much security from us. giving them over $2 billion a year as is. we'll start shaving off $800 million from that.

>> obviously, they have been an important ally in the fight on terrorism. they've been a victim of enormous amounts of terrorism. but right now, they have taken some steps that have given us reason to pause on some of the aid which we were giving to the military. >> the reasons he's referring to include not helping us out when it comes to catching terrorists and kicking 100 u.s. army trainers out of their country in the last few weeks. brand new secretary of defense leon panetta said this week, pakistan needs to come to their senses and realize that we should all be on the same team. >> i think we have to continue to emphasize what the pakistanis said, in the end, it's in their interest to be able to go after these, you know, these targets as well and in the discussions i've had with them, i have to say that, you know, they've given us cooperation in going after some of these targets. we've got to continue to push

them to do that. that's the key. >> we'll have to wait and see but this could get kind of complicated because we've relied on pakistan for help in the war on terror as secretary panetta just referenced and in the war in afghanistan and we use their land as a critical supply route into afghanistan. so it will likely cause some problems if we couldn't do that anymore. >> very delicate. thank you, peter. >> crews in india are scrambling through wreckage at this hour desperately searching for survivors of a deadly train crash. more than 100 people were hurt and at least 31 people were killed when an express train derailed near the city. the death toll has been rising all morning. the train was heading to new delhi from calcutta when officials say 12 cars suddenly skidded off the tracks. two members of the tennessee national guard died when their helicopter crashed. the chopper went down during a routine training flight. it hit power lines on the way down knocking out electricity for thousands who live in that area. no word on the cause. we know the pilots were in a

type of helicopter that's already subject to a lawsuit because of apparently faulty control systems. >> as the debate heats up over the debt, so do the warnings. g.o.p. presidential candidate and texas congressman ron paul says these harsh words for the white house. "in washington, if you hear about a so-called deal, you can be sure that taxes will come. but the cuts never will." he's also warning republicans not to fall for any deals from democrats and he's joining us live now via skype from texas to explain why. hello, congressman. good to see you today. >> hello. good to talk to you again. >> all right. so you're convinced that regardless of what kind of deal they work out, in the -- in the long term, you think that spending cuts aren't going to come. why not? >> because the problem is too big. i don't question there are good intentions. i think a lot of members of congress on both sides would like to get this behind them.

but the problem is too big. there's too much momentum. big government is there and nobody wants to cut the military. nobody wants to cut the entitlements so they -- they make this pretense but i don't think the cuts will come. they talked about this in the 80's and said if we raise taxes, we'll do the cuts but the cuts never came. and i work on the assumption that only this year's budget is what counts. if you promise to cut in the next 10 years $4 trillion, i mean, why should that reassure the public or why should that reassure the marketplace? it's just, you know, putting things off. we have to decide as a country on whether or not we should be the policemen of the world and whether we can afford this entitlement system and those are the two questions that they do know how to ask. >> congressman, that sounds pretty pessimistic that we're not going to turn this around, the appetite for big government is insatiable at this point. so what's the long-term bit of hope? is there any in your view? >> oh, yeah. i'm very hopeful and very positive on the long run but i

think we're going to through a bankruptcy first because everything we've done so far is spend more and run up the deficit and print more money. and eventually, the world will give up on the dollar and it will go through the ringer, through the bankruptcy and every reason in the world will come to our senses, maybe we'll follow the constitution, doing those things that are authorized, have fou sound money and don't allow the fed to print money and have a sensible foreign policy. they're not on the verge of this. many young people are ready for it. they can't get a job let alone pay for all this, all the wars and all the entitlements so the whole process is coming to an end. that's why i'm predicting in the next week or two or month or two, they're not going to come up with a solution that's going to help everybody. >> you're looking at the idea of passing august 2nd, you're predicting an all out collapse of the u.s. dollar and

bankruptcy for the united states? >> oh, yes. i mean, we're -- we've literally declared that already. one time we promised we'd pay gold for our dollars and we declared we didn't have that. now, we default all the time because we print money to pay our bills and the dollar goes down in value so if somebody pays you $10,000 they owed you a year ago, you're only getting probably $900 and the government wants to pay their debt with cheap money. so they want inflation. they want devaluation. it's the only way they can politically liquidate the debt. other way you lick i had ate debt is you stiff everybody and you don't pay your bills. we're going to pay our bills. everybody is going to get paid. they're talking about changing the cpi right now so they don't raise the benefits and people under social security and they're going to say it with a straight face and say, oh, the cost of living isn't going up so there's all kind of ways government manipulates. worst manipulation is the

depreciation of the currency. i don't know how they can stop it. if everybody was worried, as i am, they would get together and cut everybody's budget 10% and save, you know, a lot of money right off the bat but there's no suggestion, no attempt to do that. no attempt to bring our troops home and no attempt to say maybe we've overextended ourselves with entitlement system and

>> the royal couple will wrap up tonight's visit to america. we'll check in live next. the space shuttle atlantis will soon open the hatch that separates it from the international space station. it's the final shuttle mission. we'll watch the rendezvous live a little bit later. my doctor told me calcium is besabsorbed in small continuous amounts. only one calcium supplement does that in one daily dose. new citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal. but also a caring touch. you learn to get a feel for the trouble spots. to know its wants... its needs...its dreams. ♪call 1-800-steemer.

>> this is the fox news alert. we are waiting for the hatch to be opened between the shuttle atlantis and the international space station. the shuttle docked for the last time around 11:00 a.m. eastern this morning after performing a maneuver to check for any damage to the space shuttle.

the hatch opening is scheduled to take place in just a few minutes and that does, we'll take you there live. atlantis' main mission is to deliver more than four tons of food to the space station. this is the final mission in nasa's shuttle program. again, we'll take you there live when the opening of the hatch and the welcome ceremony takes place. >> from glitz and glamour to doing good, the duke and duchess of cambridge are wrapping up their visit to california today with a series of events that highlight charity, art and the military. casy siegel following it live in downtown los angeles where there's plenty of security. you have the details. >> hey, shannon. good to see you. yeah, it has been a whirlwind tour for the royal newlyweds. no doubt about that. the royal couple expected to arrive at this very location in about one hour. their car will pull up right behind where i am standing and they're going to be going downstairs to this school. this is the inner city arts, a program that serves kids from

low income areas of los angeles such as skid row and it introduces them to the arts. things like music and dance and theater. they are going to be meeting with a select handful of students and also some of the instructors, really a stark contrast to the star studded events they attended yesterday. look at this. last night at a black tie affair for the british academy for film and television arts, barbra streisand, nicole kidman, ann sweeney among some of the a listers at their table. the duke addressing the crowd about the joint efforts between the u.s. and u.k. film industries. listen. >> when american and british creative talent gets together, magic happens. let's continue the winning formula. catherine have been hugely looking forward to tonight's events with an exciting cast, british and american. thank you all so much for coming and i believe great things will result. now, as they say, lights, camera, action.

>> and prior to that dinner last night, the duke and duchess attending a polo match in santa barbara. prince william scoring four goals while catherine cheered from the sidelines. the duke's team winning that game, by the way. after this morning's event, they're headed to a jobs fair for military veterans not far from this location. today, all about philanthropy before they head out at 3:30 local time, 6:30 eastern where they'll depart los angeles international airport and head home back to the u.k. after, as i said, a very busy three days here and a busy nine day tour all throughout canada. shannon? >> we just can't seem to get enough of the new royals. thank you. >> no, we cannot. >> as the president meets with lawmakers about raising the debt ceiling, one congressman actually wants to reduce the borrowing limit. joining us now is georgia republican paul brown who is behind the debt ceiling reduction act. also joining us for a fair and balanced debate is texas

democrat henry quarar, vice chairman of the president's steering committee. welcome to you both. >> thank you. >> congressman brown, is this a stunt? >> no, absolutely not. shannon, the thing is we've seen republican and democrat presidents and congresses continue to spend money that we don't have so for the last 10 years, we raised the debt ceiling 16 times. what have we got for it? spending trillions of dollars of money that we just simply do not have. we've overspent. we're overextended. extended as a nation and we've got to start paying off the debt and start creating a strong economy so to create jobs. and that's what this is all about. >> so if we can't, though, get people to agree to the current debt ceiling issues that we're trying to negotiate, how in the world do you think you're going to get them to move when it comes to spending money? >> shannon, i'm a medical doctor. and in a previous race, i had a

slogan "congress is sick, we need a doctor in the house." congress is sick. it's got a spending addiction. and what we need to do is we need to have an intervention. we've got to have an intervention so we can stop this craziness of spending money we don't have and we've got to put us on a -- actually, we need to put people in rehab so that we can have recovery. so that we can start healing as a nation economically and that we can start heading towards prosperity. it is a method of madness to continue to raise the debt ceiling and that's exactly what we hear members of congress doing. and i have constituents all over my district as well as people all over this country who want to see us start paying off the debt. and that's what my deal is all about. >> congressman, how do we start getting our fiscal house in order? >> first of all, we have to keep in mind that we got to focus on the congressional

budget process. you know, in fact, just a couple of days ago, we voted on one appropriation bill where we'll increase it by 3%. so if we want to get a hold the spending, we have to start with the budget process. the debt limit is something that's been already incurred and in fact, it's been incurred years ago. it didn't happen two years ago, it's been there for many years. in fact, president reagan -- let me start again, it's been great and president reagan raised it 17 times and president george w. bush, a friend of mine raised it seven times. president obama, i think, has raised it a couple of times so again, this is debt that has been incurred in the past. we have to focus where the problem is and the problem is on the spending. every year, our budget is about $3.5 trillion. the revenues that come in are about $2.1 trillion. so there's a deficit of about $1.3, $$1.4 trillion so if we cut everything off to just match

the revenues we'll be paying for medicare, medicaid, veterans benefits and the entitlement program and we're cut education and everything off in order to have a balanced budget. we have to look at a way to address that -- really that imbalance that we have. >> shannon -- >> real quick, i want to ask the congressman, i know you've been critical of the plan that's been floated by congressman paul ryan as far as getting medicare under control and changing it and people on both sides of the aisle agree that a number of the entitlement programs are going to run out of money. you're critical of the ryan plan. what do you think would work? >> well, you know, first of all, there's a way that you can address the costs but to turn a -- a medicare program into a voucher system, that is right now medicare pays the doctors, pays the hospitals so instead of giving that money directly to those hospitals, it's given over to an insurance company and then the insurance company will then turn around. cbo which is an independent body has said it will cost money out

of the pocket of our seniors. i don't want to go that way. what i want to see is a way to address that issue where you don't cut the benefits of those individuals. there are ways to address this issue and by the way, this is one very important point. even under the paul ryan plan, the debt limit will have to be raised several times for the next years in order -- even if you followed the paul ryan plan, that point is very important. i asked folks to take a look at that also. >> all right, congressman brown, quickly, i'll let you finish us out. >> ok, shannon. i agree with my friend in that we've got to look at the spending and we've got to look at every dollar the federal government spends. we cannot leave anything off the table. in fact, i've got a mayor in a small town in georgia that reduced her expenditures in her community by 67% and she says, everything has to be on the table. and i agree with her.

only 1/3 of the federal expenditures today are in what's called discretionary spending. we've got to look at every single expenditure of the federal government and take a fine toothed comb. we have to stop spending money that we don't have. this debt that we have today at $14.3 trillion is unsustainable. it's going to lead us to economic collapse. we are in an economic emergency. we need to start paying down the debt, we need to stop this spending that congress and the presidents of both parties have been doing. it has to stop and we have to start spending down the debt. raising debt limit is a method of madness. we can't go there. we have to start paying down the debt and putting us back on a financial course that's sustainable and create jobs and a stronger economy. that's what my bill will do. >> all right, congressman brown and quarar, we're happy to hear any points of agreement there. >> thank you.

>> as we mentioned, we are watching the skies for the opening of the hatch between atlantis and the international space station. that should happen at any moment. when it does, we'll bring it to you live. after 168 years, newscorp ceo rupert murdoch has decided to shut down the best selling newspaper because of a scandal. skye news reporter joins us from london with the very latest. >> well, here at the former headquarters of the news of the world, there is very little activity but as you say, after 168 years, the news of the world is no more. but earlier today, about 12:00 u.k. time, rupert murdoch arrived at the headquarters. he was in the front passenger seat of a red range rover. he was holding up and reading what appears to be the latest, the final edition of the news of the world newspaper.

he was here relatively briefly and then left shortly after. really, he is here in the u.k. for two main reasons. the first is to take control of the handling of this phone hacking situation. that has really put a cloud over the news of the world newspaper at news international and also has been for -- i think really that is crucial for rupert murdoch and the reason that he is in the u.k. today, the amount of money, revenue that newscorp could bring in did go through, what amounts to billions of dollars more money than news international revenue, news international would be able to bring in. so i think over the next 24, 48 hours, he'll be in some pretty intense conversations with some senior executives from news international in a bid hoping to get the situation that's really been spiralling out of control over the last few weeks.

not sure how long he'll be in the u.k. for but really his key objective now is to make sure that it gets through. >> all right. thank you very much, the latest from london. well, moms and dads, listen up, your family's trip to the amusement park could be even more expensive this year. we'll explain why and tell you how you might be able to save some money. plus one lawmaker says we should be looking to a higher power for the solution to a debt problem. we'll talk live with congressman charlie rangel to find out why. looking good! you lost some weight. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain. [ female announcer ] people who choose more whole grain tend to weigh less than those who don't. multigrain cheerios... five whole grains, 110 calories.

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♪ hah >> you are looking live now in space. the hatch is opened between the space shuttle atlantis and also the international space station there. the last shuttle, of course, the atlantis is as part of the program. the crew is now inside the space station. there's a welcoming ceremony there. the shuttle, this final mission

is delivering four tons of food, clothes and we're told other space provisions, about a year's supply for the crew that's there on the international space station. again, that's the final time we'll see that opening of the shuttle hatch to the international space station as atlantis is the final shuttle to go on this mission. let's take a listen in to nasa. >> and they are silent for now. but you saw the hatch there. you saw the transfer. and we'll check back in a little bit later if there's news there as well. >> high stakes debt talks are scheduled for the white house tonight and we're learning more about where both sides stand hours before the big meeting. peter doocy is standing by with your headlines. hi, peter. >> hi, shannon. republican leaders are saying the so-called big deal is off the table ahead of tonight's talks. house speaker john boehner says he's looking at a smaller deal

based solely on tax cuts and watt the tax hikes by democrats. washington is reportedly tightening the purse strings of pakistan and causing some serious tension. according to a report in "the new york times," the military aid being sent by the u.s. is being held back if pakistan's terrorism policies do not change. a memorial service is being planned for betty ford over the next few days. her body will be moved to michigan for a private burial next to her husband, gerald ford. it looks like third time is the charm for "transformers". "transformers 3, the dark side of the moon" topped sales on friday for a second straight week bringing in $14.9 million. that's a look at the top stories this morning. back to you. >> thank you very much. house speaker john boehner has changed his tune about a possible debt deal floated by democrats and he's setting his sights on something a whole lot smaller. doug mcelway is live on capitol hill with the very latest. what are you hearing from capitol hill? >> well, we're hearing that the democrats say that these talks fell apart because of the

republicans' refusal to raise taxes on the wealthy. the republicans utterly rejected that categorization and they say they're refusing to raise taxs on the job creators especially with the unemployment rate now standing at 9.2%. republicans also point out the democrats' own refusal to accept any cuts on social security and medicare. it leaves both sides totally dug in with nowhere to go. is there a way out of it? listen to what the senator told you, shannon, just a few minutes ago, early this afternoon. >> i certainly see a pathway forward if we can get out of the paradigm we're in right now. if you notice what's been said, we're in the age old battle, should we raise taxes on the rich or should we cut spending that helps the poor? and those politics work really well but it doesn't work well for the solution. >> he says virtually everything needs to be on the table. now, with the ultimate goal of growing the economy, he says

that this takes us back in some respects to the gang of six talks. keep in mind, those talks broke down when senator tom coburn walked out of them just as vice president biden talks broke down when house majority leader eric cantor walked out of them. yet, the vice chairman of the democratic caucus in the house says that that remains a sticking point. listen to what he said on "fox news sunday." >> the american public gets it that there has to be shared sacrifice. the american public gets it that there are some folks, millionaires who haven't been paying their fair share and so the american public poll after poll shows, has said let's let everyone pay a price so he has to gain in the future. no pain, no gain. >> so we are in effect back to where we started. some say the way out of this gridlock is to simplify taxes, simplify taxes, especially corporate taxes in exchange for getting rid of some tax breaks and tax loopholes.

it remains to be seen whether that will gain any traction beginning tonight with the meeting at the white house. >> we are all watching. thanks for the update from the hill. >> what will jesus do? i'm just taking the question and saying what would jesus do this weekend? >> that is a unique take on the debt ceiling debate coming from democratic congressman charlie rangel. he thinks the religious community should be weighing in for potential cuts to programs for seniors and the poor. here to talk more about this unique take is congressman rangel. thanks so much for joining us today, sir. >> thank you, shannon, for having me back. >> hey, listen, i have no doubt that there are a lot of prayers that have gone up for the hope that folks on capitol hill will find a solution. what role do you think religion should be playing in this whole negotiation? >> it's abundantly clear to me as all of the people have said before, the $14.3 trillion indebtedness that we have has to be cut and has to be cut through

less spending and raising revenue. one side, someone said we have the richest of americans that have the lowest tax rates since 1950 and our corporations are making obscene profits. on the other side, we have our poor, those who need of health care, those that are old, those that need social security and so the question is what about the lesser among us? what about those poor folks and the good samaritans? so it's easy for me to say what would jesus do because this is not just a moral question -- i mean, just a political question. it is a moral question so i am surprised that we don't hear from the rabbis and the priests and the ministers and the imams because this is their business. not just politicians. >> well, you got to be careful because they may weigh in not only on those specific issues about entitlements but i'm guessing that they would say jesus wouldn't run up $14 trillion in debt either. >> they might say that. that's why people have to go to

their training. you know, if the sky was -- if the economic sky was the fall, the very rich in this country would not feel any pain at all. and i don't know what jesus or moses or anyone would say but the issues are so morally clear and that is we are our brothers' keepers and if we don't raise the revenue through tax reform, then we're talking about old citizens that need help that this will be denied them, no one challenges that. social security being in jeopardy and so many families depend on it, medicaid, people we have in homes and hospitals that need the aid, you know, all of this is biblical, it's old testament, it's new testament, it's the quran and the torah, and it doesn't say anything about democrats and republicans. if you read the bibles and read the spiritual scriptures, you see clearly that jesus would have something to say about this

debate. >> yeah, and christ did caution those in the religious communities, he talked about that we should look out for the widows and those that are fatherless among us. do you think the faith community should look out for more looking out for the brothers and sisters instead of the government being the ones to take care of everyone? >> it's certainly moral stand that's above the government no matter how much we appreciate democracy in this country. but the case is abundantly clear. our tax rates are the lowest for the rich than it has been in 50 years. our corporations may get outstanding historic profits. are they paying a fair shake on their taxes especially corporate taxes with the loophole and on the other side, do we have millions of people going into poverty from the middle class that's never had suffered like this before? do we need food stamp? do we need shelter? do we have homeless? do we have tens of thousands of troops going to foreign

countries, being killed and none of the religious leaders can say why they're there? oh, no, it's time for a moral position to be taken by government. >> all right, congressman rangel, very unique perspective and maybe remind all of us, politics aside, to be looking out for each other. >> thank you. it's sunday morning! >> it is. thank you, sir. >> well, it's sunday. >> triple digit temperatures are breaking summer records across the country. and it's only july. maria melenez in the fox weather center with more on that extreme heat. hi, maria. >> that's right. records being broken left and right. one town in particular, wichita falls, texas, northern texas, north of dallas, they saw triple digit heat not only as early as april but so far for the month of june, they broke a record. they had to deal with temperatures over 100 degrees for about 28 days. so 28 out of 30 days. that's a lot of heat and

fortunately, it will be continuing. so we're expecting another hot day across the center of the nation. also across the southern plains, we're talking about temperatures, widespread in the 90's. even as far north as minneapolis, minnesota, so that's a lot of heat. factor in the humidity and it's going to feel even hotter so this is extremely dangerous. it's going to feel like 106 in little rock, arkansas. 102 in memphis, tennessee. that's why we do have a number of heat advisories across this region from southeastern nebraska through even alabama. shannon? >> all right, maria, thank you very much for the update. the new secretary of defense leon panetta says that defeating al-qaida is no longer a far off dream. he says it could soon be a reality. the details on his first overseas trip as secretary next. naturals from delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life.

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>> defense secretary leon panetta has touched down in baghdad. he's making news on his first trip overseas as secretary saying he believes the defeat of al-qaida is now within our reach. david piper is streaming live

from kabul, afghanistan with more. hello, david. >> hi, shannon. before the top u.s. defense secretary left for baghdad, he spent the day in southern afghanistan leading the troops and seeing for himself the situation there. that area is crucial for the fight against the taliban. it's seen some of the fiercest fighting and in vast majority of u.s. troops are based, as you said, this is his first overseas trip since his new responsibility and afghanistan is a key one for him. and the defense secretary has been very upbeat about prospects of defeating al-qaida. he said that if they can keep the military pressure up on them, and also capture or kill less than 20 of the terror group's leaders still operating countries between here and afghanistan, then they will in effect strategically defeated them. his upbeat assessment comes as afghanistan prepares for a gradual draw down of u.s. troops

due to begin this summer. 10,000 are due to leave this year and another 23,000 in 2012. panetta has already had a meeting here in kabul with the afghan president hamid karzai to discuss the drawdown and the role of afghan forces when this happens. they're already about to take the lead in some areas with nato forces handing over to them this month. the defense secretary also said he hoped to drive the taliban to peace talks during a period when u.s. forces draw down. he says it's key they keep the pressure up now to give the countries a chance for reconciliation and speaking today, down in kandahar, the new defense chief said the focus of this trip that he's undertaken here is to hand over of security to afghan forces. he now moves on to baghdad and has to deal with the situation there. back to you, shannon. >> all right, david piper live with the latest. thank you so much. one of the most contentious parts of president obama's

health care law is whether or not you should be forced to buy insurance coverage. that individual mandate has been upheld now by the sixth circuit court of appeals, and happened just days ago. we're waiting to hear from two other federal appeals courts and ultimately, we believe the supreme court. joining us now is tom dupree to break it all down. great to have you back. let's talk about this ruling from the sixth circuit. a lot of people say it's a huge win for the white house. what does it mean? >> there's no question it's significant, they said the law is constitutional. at the same time, judge sutton is very careful about explaining why his conclusion was constrained by existing supreme court precedence and a lot of what he said was basically inviting the supreme court to revisit some of their older cases that endorsed the more expansive view of federal power so many people are reading it as an viabilityation for the supreme court to take the case and then to adopt a more limited view of the commerce clause than they have in the past. >> those nine justices are the only ones that can weigh in and overturn their other precedence.

we mentioned two other courts we're waiting to hear from. we expect by the end of the summer, we'll have those three rulings in. if they differ, that provides that split among the circuits and that's perfect and supreme court makes it right for them to take it up. do you think it ends up on next term for them? >> i think there's a good chance you will. particularly if you say another court of appeals comes down and says the law is unconstitutional. then you would have an untenable situation where the law might be enforcement in some states in the country and not in others. if you say that's exactly the type of case where the supreme court says we need to jump in and resolve this once and for all. >> there are folks on both sides of the aisle now on capitol hill asking for investigations and pushing for a couple of the justices to recuse themselves. there's questions about how much justice kagan was involved in health care strategy and justice thomas whose wife tends to benefit from overturning health care. are those justices going to

recuse themselves? >> that's the way the system is set up and that's the way the system should be. you'll find a lot of political back and forth. many people anticipate this as a case that can split the court 5-4. in that situation, losing one justice on either side of the equation could be a real earthquake. >> all eyes on judge anthony kennedy and so many 5-4 decisions, the last couple of terms, he's the one everybody looks to. >> i think justice kennedy is an absolutely critical vote and another critical issue is what the supreme court wants to do with some of the older precedents. there's no question as of the founding we were a federal government of limited, specifically enumerated powers. the supreme court has moved pretty substantially away from that model particularly since the new deal so fascinating to see if the supreme court uses this case as an opportunity to reign in some of the more expansive precedents. >> good to pick it apart with you. >> thanks, shan on. >> amusement parks are raising their prices when american families are hurting most. how can families stay within their budget and also have some summer fun?

julie bandera has march on that story. >> hey, shannon. just as you may be planning your summer family trip on a budget, not so fun news for you. big three amusement parks are getting ready for their peak summer season by welcoming you with, that's right, higher prices. disneyland in anaheim, california, raised the price of its popular three-day pass nearly 9% to $224 while walt disney world in orlando, florida, hiked its three day adult pass by 4% to $232. universal orlando increased the gate price on its three day ticket by 11% to $156. the orlando parks raised the one day adult passes $3 to $85 while disneyland raised its one day adult pass $4 to $80. while big theme parks do regularly raise prices, i might add, heading into the peak summer season, this is nothing new, experts say this year's hikes are, in fact, higher than usual. the parks spokespeople say they need to raise prices to keep up

with rising costses but for consumers trying to keep their heads up in a recession, travel experts are saying there are other options. >> there is what we call the stay-cation phenomenon. people are staying close to home so they are making less of the big trips, staying and visiting, say, the local theme park and they take advantage of that. >> the average daily adult ticket price, by the way at three theme parks nationwide is $49.95. that's $42 less than a day pass to dizb disneyland according to survey by national parks. i'm all for discounts. local residents of the big three parks get special rates and experts advise buying tickets on line, scouring the social media web sites and theme parks. their own web sites for deals. it's all about the counts this summer, shannon. >> i love a deal. thanks for the advice. >> never pay full price for anything. that's my motto. >> agreed. agreed. thank you, julie. >> see ya. >> high unemployment numbers have made the pursuit of life,

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>> the nation's unemployment rate is at 9.2%. but unemployment among the disabled has been staggering for years. so how can those with disabilities still fight for the american dream. joining us now, someone who has done it, author and former chairman of the u.s. access board's executive committee, j.r. harding. great to see you today. >> thank you, shannon. lovely to be here. >> you have overcome significant tragedies in your life. education, higher education, graduate degrees, employment, for a lot of folks who are fighting with disabilities out there. how did you make it happen and how can we make it easier for others to be successful as well? >> first, it's about 70% unemployment for persons with disabilities and we go a long way to fix that for the economy. in my case, it was baby steps. finding little goals that made a difference. and never quitting, knowing in your heart that you have something to achieve, something to give, and convincing others

that you're able to do so. >> and that, i would guess, is the part that's the toughest part of your struggle is to make others see your skills and you can put them to work for them. >> that's correct. i mean, i was supposed to go off and play football in college and life changed. and then going to college became the primary goal. from there, finding what was i going to do? teaching was something i could do. and math worked. right. but those in the teaching field weren't certain i could do it and then the earnings for teaching while it's honorable and professional and good, it just didn't pay the bills. and so advanced degrees made a difference. so i was able, then, to penetrate into mid management and senior management of opportunities in both the state and federal level. >> you have a new book out. >> i do. >> we want to let people know about that. they can get it at amazon.com and tells a lot of your story which is amazing. i wish we could cover all of it. it's called "now what" and as we look now, 26 plus years after

the americans with disabilities act, how are we doing as a society to help folks and to further them? >> it's clear we've made night and day difference. i wouldn't be here today if it wasn't for the ada. however, we still have a long way to go. and the unemployment is one of those things. how about the outdoors? how about international travel? things beyond your immediate vicinity. so with good luck and hard work, we'll continue to create opportunities for those who want to contribute. >> we wish you a lot of continued success and with the book as well. >> thank you, shannon. >> well, every year, the latest on this year's running of the bulls plus thousands in new orleans turned out for the city's version of the spanish festival.

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>> it's a five centuries old

tradition that's not for the faint of heart. more than 3500 people took part in the fourth day of the running of the bulls in spain. sunday is typically the most exciting day with spain's largest bulls racing towards the bullfighting ring. there were eight injuries. luckily this time around, no one was gored. all right, now in new orleans, they have a different take on this tradition. the spanish festival that plays out in pamplona, this is the different version. instead of bulls, roller derby girls wearing horned helmets strap on their skates and try to mow down the party goers. looks like they're having a lot of fun and not as dangerous. before we go, a rare sight. a donkey zebra born in a cuban zoo. the crossbreed has a brown body with black and white striped legs. that is one of the cutest things i've ever seen. zookeepers say she was conceived naturally but not the first time this has happened. another donkra was born on july 4th in china. adorable. that's it for us here in washington. "fox news